Mutual Funds in Ghana

The study principally looked at the performance of mutual funds in relation to other forms of investments. With few exceptions, mainly in Asia, mutual funds grew explosively in most countries around the world during the 1990s. Empirical evidence consistent with this position generally has found average mutual fund performance lagging overall market performance on a risk-adjusted basis Connor and Korajczyk (199l); Elton et al. (1993); Grinblatt and Titman (1989); Jensen (1968);Malkiel (1995); Sharpe (1966); Treynor (1965)]. However, research by Chang and Lewellen (1984), Grinblatt and Titman (1992), Henriksson (1984), and Ippolito (1989) indicate that some mutual fund managers have been able to earn sufficient excess returns to meet or exceed the additional costs of active portfolio management. The objectives of this thesis were to investigate the viability of mutual funds in Ghana for the period 2005-2009, analyzing the challenges that Databank faces in operating mutual funds in Ghana and to analyze why investors invest more in other financial instrument rather than mutual funds in Ghana.